South Africa’s financial landscaped is blessed with countless financial players.These financial players have warmed up to the idea of providing tax free savings accounts. Below are South Africa’s top tax free savings accounts.
Nedbank – Nedbank offers this account in a short or medium term.The minimum deposit required is R50 a month or lump sum deposits of up to a maximum of R30,000. You earn interest of up to 5.25% a year and you can access your funds within 24 hours. You can opt to earn compound interest or have the interest you earn paid into an existing bank account. There are no fees, commissions or penalties on this product.
FNB – FNB offers tax free cash deposit account and tax free shares account. The minimum deposit for tax free cash deposit account is R1 and you can access your money within 32 days. Interest is at 5.25% a year if your savings are more than R20,000 and lower rates apply for lower savings amounts. The tax free shares account demands minimum deposit of R300 and accessibility is within 24 to 48 hours and fees are at 0.4% a year.
Standard Bank – This tax free savings account offers you immediate access.You earn interest on a tiered scale, starting at an effective 5.01% for amounts of R250 to R5000 and going up to an effective 5.48% for amounts between R20000 and R30000.
22Seven – 22seven is a free online service, as well as free application available for download, which allows users to see all of their money in one place. The company has brought out a simple, easy-to-access tax-free savings account. The sign-up process is 100% online, can be done on your mobile phone and it takes just minutes to open an account. You can withdraw money any time without being penalised. Minimum investment is R350 once off or monthly.
Old Mutual – This is a tax free plan that demands R350 a month deposit or a lumpsum of R5000.You can invest according to your requirements. For example, R1050 each quarter, R2100 twice a year or R4200 a year.There are no performance fees, but if you use a financial adviser, you can be charged an initial advice fee. The underlying fund will carry an annual service fee, which may include a trail fee to your financial adviser